Dive Brief:
- Knight-Swift Transportation Holdings is poised to pay about $2.2 million to acquire 10 Yellow Corp. leases, according to a bankruptcy court filing Monday.
- The properties are primarily in the western U.S., with three in Idaho, two in Colorado, two in Kansas, one in Missouri and one in Nebraska. Another property is in Georgia.
- The price could change based on an ongoing review relating to certain maintenance and repair items, per the filing.
Knight-Swift buys Yellow assets
Dive Insight:
Companies have spent nearly $2 billion to acquire Yellow properties for its strategic terminal assets, selling 128 properties and 25 leases.
Knight-Swift, traditionally in the truckload business, entered the LTL sector in 2021 and has been seeking to grow the business to provide in-house national service by the end of 2025.
The carrier previously picked up two USF Reddaway leases, in Montana and Washington, and 13 purchases in Yellow’s bankruptcy auction proceedings.
As of Monday, Yellow had 108 leased properties and 46 owned properties that it’s still seeking to sell, per the court filing.
During a Q4 earnings call in January, CEO and President David Jackson reiterated that Knight-Swift’s LTL expansion remains a strategic priority.
“Filling out a super-regional network in the short term and created a national network in the long term will allow us to participate in more freight and enable us to find opportunities to further support our existing truckload customers with LTL capacity,” he said.
